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Home > Banking Services > Checking > Handling Checks
Handling Checks
There are several reasons why people use checks: safety, convenience, bookkeeping, budgeting. Cancelled checks often serve as a proof of payment, are safer than cash, and are very handy. Therefore, it is essential that you know how to write and cash checks properly. When writing checks, always do it with pen as pencil can be easily erased and the information can be changed. Always ensure the check has a number; otherwise, write a number on it. Also, write the date accurately using the date the check is written. When writing the payee name, try to avoid abbreviations as much as possible.
There are different types of checks which it is important for you to be familiarized with. Cashier checks are guaranteed checks. You can get a cashier’s check with cash or by personal check from a bank or a savings and loan association. The company issues a cashier’s check that is drawn on its own account and made payable to the person you designate. People who do not have a checking account commonly use cashier’s checks, as well as people who do not want to make a payment in cash. When you obtain one of these checks, you are given a copy of the cashier’s check for your records. These checks may be required in some transactions in which a contract calls for a certified check or when the person writing the check is not known. Money orders are also used by people who do not have checking accounts. They essentially are the same as cashier’s checks. Certain banks issue only cashier’s checks, while others issue both cashier’s checks and money orders. A fee is charged for cashier’s checks and money orders, and they vary from bank to bank.
There are also traveler checks. These checks are accepted widely and are a safe way to carry funds. They can be found in different denominations, usually of $10, $20, $50 and more from banks, credit unions and savings and loan associations. When you purchase these checks, you must sign each one at the top in the presence of the seller, and at the time the check is cashed. You must write the date, the name of the payee and sign the check one more time at the bottom. This procedure is for preventing check fraud. The fee for purchasing traveler checks is $1 per $100 of checks.
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